Accounting Standard
AASB 2008-6
July 2008
 
 
 
 
Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
 
[AASB 1 & AASB 5]
 



Obtaining a Copy of this Accounting Standard
This Standard is available on the AASB website: www.aasb.gov.au.
Alternatively, printed copies of this Standard are available for purchase by contacting:
 
The Customer Service Officer
Australian Accounting Standards Board
Level 7
600 Bourke Street
Melbourne   Victoria
AUSTRALIA
 
 
 
Postal address:
PO Box 204
Collins Street West   Victoria   8007
AUSTRALIA

Phone:        (03) 9617 7637
Fax:             (03) 9617 7608
E-mail:        publications@aasb.gov.au
Website:    www.aasb.gov.au
 
 

 
Other Enquiries
Phone:        (03) 9617 7600
Fax:             (03) 9617 7608
E-mail:        standard@aasb.gov.au
 
COPYRIGHT
 
© 2008 Commonwealth of Australia
 
This AASB Standard contains International Accounting Standards Committee Foundation copyright material.  Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.
All existing rights in this material are reserved outside Australia.
Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the International Accounting Standards Committee Foundation at www.iasb.org.
 
ISSN 1036-4803
 
CONTENTS
Preface
Accounting Standard
AASB 2008-6 FURTHER AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS aRISING FROM the Annual Improvements PROJECT
 
Paragraphs
Objective                                                                                                                        1
Application                                                                                                             2 – 4
Amendments to AASB 1                                                                                      5 – 8
Amendments to AASB 5                                                                                    9 – 11
 
 
 
Australian Accounting Standard AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project is set out in paragraphs 1 – 11. All the paragraphs have equal authority.
Preface
Standards Amended by AASB 2008-6
This Standard makes amendments to Australian Accounting Standards AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards and AASB 5 Non-current Assets Held for Sale and Discontinued Operations. These amendments are additional to those in AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project.
The amendments result from proposals that were included in Exposure Draft ED 159 Proposed Improvements to Australian Accounting Standards issued in October 2007 and follow the issuance of the IASB Standard Improvements to IFRSs in May 2008. The IASB’s annual improvements project provides a vehicle for making non-urgent but necessary amendments to Standards.
Main Features of this Standard
Application Date
This Standard is applicable to annual reporting periods beginning on or after 1 July 2009, with early adoption permitted for annual reporting periods beginning on or after 1 January 2005 but before 1 July 2009. However, an entity shall not apply the amendments for annual reporting periods beginning before 1 July 2009 unless it also applies AASB 127 Consolidated and Separate Financial Statements (as amended by AASB 2008-5 in July 2008).
An entity applies the amendments prospectively from the date at which it first applied AASB 5, subject to the transitional provisions in paragraph 45 of AASB 127.
Main Requirements
This Standard amends AASB 1 and AASB 5 to include requirements relating to a sale plan involving the loss of control of a subsidiary. The amendments require all the assets and liabilities of such a subsidiary to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation.
 
aCCOUNTING STANDARD AASB 2008-6
The Australian Accounting Standards Board makes Accounting Standard AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project under section 334 of the Corporations Act 2001.
 
 
D.G. Boymal

Dated 24 July 2008
Chair – AASB

 
 
aCCOUNTING STANDARD AASB 2008-6
FURTHER AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM the Annual Improvements Project
Objective
1              The objective of this Standard is to make amendments to AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards and AASB 5 Non-current Assets Held for Sale and Discontinued Operations as a consequence of the annual improvements project. These amendments are additional to those in AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project.
Application
2              This Standard applies to:
(a)       each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b)       general purpose financial statements of each other reporting entity; and
(c)       financial statements that are, or are held out to be, general purpose financial statements.
3              This Standard applies to annual reporting periods beginning on or after 1 July 2009.
4              This Standard may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2009.  
Amendments to AASB 1
5              Paragraph 34C is amended to read as follows:
34C     A first-time adopter shall apply the following requirements of AASB 127 Consolidated and Separate Financial Statements (as amended in July 2008) prospectively from the date of transition to Australian equivalents to IFRSs:
(a)       …
(c)       the requirements in paragraphs 34-37 for accounting for a loss of control over a subsidiary, and the related requirements of paragraph 8A of AASB 5.
…
However, if a first-time adopter elects to apply AASB 3 (as revised in 2008) retrospectively to past business combinations, it shall also apply AASB 127 (as amended in July 2008) in accordance with paragraph B1 of this Standard.
6              The heading “Effective Date of IFRS 1” above paragraph 47 is amended to read “Effective Date”.
7              Paragraph 47L is added:
47L     Paragraph 34C was amended by AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project issued in July 2008. An entity shall apply those amendments for annual reporting periods beginning on or after 1 July 2009. If an entity applies AASB 127 (as amended in 2008) for an earlier period, the amendments shall be applied for that earlier period.
8              Entities shall apply these amendments to AASB 1 when they apply the amendments to AASB 5 set out in paragraphs 9-11 below.
Amendments to AASB 5
9              Paragraphs 8A and 36A are added:
8A      An entity that is committed to a sale plan involving loss of control of a subsidiary shall classify all the assets and liabilities of that subsidiary as held for sale when the criteria set out in paragraphs 6-8 are met, regardless of whether the entity will retain a non-controlling interest in its former subsidiary after the sale.
36A    An entity that is committed to a sale plan involving loss of control of a subsidiary shall disclose the information required in paragraphs 33-36 when the subsidiary is a disposal group that meets the definition of a discontinued operation in accordance with paragraph 32.
10           The heading “Effective Date of IFRS 5” above paragraph 44 is amended to read “Effective Date”.
11           Paragraph 44C is added:
44C     Paragraphs 8A and 36A were added by AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project issued in July 2008. An entity shall apply those amendments for annual reporting periods beginning on or after 1 July 2009. Earlier application is permitted. However, an entity shall not apply the amendments for annual reporting periods beginning before 1 July 2009 unless it also applies AASB 127 Consolidated and Separate Financial Statements (as amended in 2008). If an entity applies the amendments before 1 July 2009 it shall disclose that fact. An entity shall apply the amendments prospectively from the date at which it first applied AASB 5, subject to the transitional provisions in paragraph 45 of AASB 127 (as amended in 2008).